DCM Multibank (IFC-38570)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Panama
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 3, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Multibank Inc.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 21, 2018

Disclosed by Bank Sep 29, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The loan is to be used to fund the growth of Multibank Inc.'s SME and housing portfolios. The project will improve access to finance for SMEs and low income housing in Panama, where the majority of top banks focus on corporates and high end retail clients allow the bank to access long term funding.

Multibank’s portfolio is mainly composed of retail (21%), housing (18%), commercial and service operations for both corporate and SME clients (35%). SME lending under the asset class supported accounts for approximately 5% of the total portfolio. IFC will also be providing technical assistance to bank on sustainable finance to expand the bank’s work in this area. The overall portfolio risks includes limited business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. IFC Advisory team is at the same time providing technical assistance to Multibank on Sustainable Energy Finance (“SEF”) and developing green products.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed investment consists of a senior loan of up to US$40 million.

Multibank Inc. is based in Panama City, Panama with 27 branches and over 60 ATMs across Panama.. It is the 9th largest bank in the country and third largest locally owned financial institution. The bank is entirely owned by Multifinancial, which is majority owned by the Btesh family (82.4%) and the German Investment and Development Corporation, DEG (6.9%) with the remainder owned by minority shareholders, none of which own more than 1%.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Multibank Inc. is a universal, locally owned bank with a long history of financing SMEs from its founding in 1962. It is the 9th largest bank in the country and third largest locally owned financial institution. The bank is entirely owned by Multifinancial, which is marjority owned by the Btesh family (82.4%) and the German Investment and Development Corporation, DEG (6.9%) with the remainder owned by minority shareholders, none of which own more than 1%.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Contact: Milciades Denis, Head Treausry & Investments
127 Via Espana, Edificio Prosperidad,
Panamá City, Panamá
Email Address:mdenis@multibank.com
Contact No.: +507 294 3500

ACCOUNTABILITY MECHANISM OF IFC


The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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